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San Francisco 14, America 9, Brandon 3, Taylor Lewis 3, Lewis 3, Thomas 2, Us 2, Dave Thomas 2, Maine 2, Jerry 1, Elaine 1, San Francisco Marina 1, The Port 1, Katz 1, Ray 1, James R. Herman 1, Richardson Bay 1, Hindsight 1, Anchorage 1, Seattle 1,
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  SFGTV    [untitled]  

    September 13, 2012
    3:00 - 3:30am PDT  

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interesting. because we show now 40% of industrial, but to break down the ground leases, would that percentage be different in terms of what the public sees, whether it's under a master tenant agreement or direct lease? >> commissioner, we have not actually done a breakdown of how the ground lease breaks into its own sort of subcategories. we have done a little bit in terms of trying to assess the number of restaurants or retail operations, but we don't always have those -- that data. we could certainly try to assembly that. >> not just necessarily from the standpoint of finances , but the characteristics of follow-up changing with use of land over time. because i think it is probably changing from the industrial portion is probably going down over time. and some of these other uses
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are coming up. so even if we don't get to talk directly to the tenant, it would be interesting to see how the portfolio break downs. >> thank you. i will work to put that together. >> i have one more question. in terms of how much the parking -- not the parking meters, but the actual parking space, square footage that they are using in parking lots. because i think you gave us 13 million square feet for the direct space leased and they have about 5 -- let's see on the ground leases, 5.8 million that is leased. what would the parking -- how much space does the parking lot that we have take up? >> unfortunately, i don't have the breakout of the square footages by restaurant or retail with me, but i can certainly provide that to you as soon as i get back to the office. >> on the parking? >> yes.
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>> you are just specifying looking at the parking? >> i'm just trying to get a standpoint of all the land that is supposedly the port. regardless of how we lease it out, ground lease or direct or how are we using it? how much is parking? how much is used for various uses? so get a feel for how the mix of real estate is being is deployed from the public's view point regardless of how it's actually being managed? just to get a sense of characteristics over time will look like different from today? >> we can provide that to you. certainly. >> i think i had one last question. when you gave us the tenure, i guess that was on the direct leasing and not on the ground lease is that correct? so the remaining tenure isn't reflected here or is did
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included? >> i'm sorry, the ten? >> the remaining term. >> and i think my interpretation was that that was just for the direct leases, not for the ground leases. or were the ground leases included? >> the ground leases are included in there. that is probably why you see such a large percentage? >> so that is the ground leases? >> yes, the 66-year leases. >> so one other question that i have, and on the ground leases we have 5.8 million square feet generating $12.8 million of annual revenue and as you pointed out, which is absolutely correct, the retailed of $1.7 million, generated $22 million. so the ground lease is not generating as much and how much is burning off rent credits? so there is rent, but it isn't reflected in the cash flow because it's burned off as a rent credit?
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>> to your earlier potent it would be reflected on the balance sheet. >> it would be on the balance sheet, but i was wondering if we have a calculation, otherwise it looks a little disproportionate. am i correct, elaine? >> yes. >> it would be for us to understand. >> we can look at that breakout with more parking information as you requested and with credits -- . -- >> it's not actually cash. >> more value than cash? >> right. >> certainly. >> sorry that i have asked so many questions. commissioner brandon, any questions? >> no questions. >> welcome commissioner katz. we're on the real estate section. i don't know if you have
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questions? >> i don't think i do. >> all right. thank you. >> item 11a requests approval for executive director or her designee to finalize negotiations for five-year landing rights agreements for water transport services between hyde street harbor, pier 1.5 and south beech parc between port and san francisco water taxi company operating scheduled service between sites and tiedline marine group operating on as-needed, on-call/inducement service between the same facilities.
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>> sorry for that delay. president woo ho, vice president brandon, commissioners i'm jerry, maritime marketer for the port of san francisco. water taxis are a popular form of transportation. at many of the world's major cities, and san francisco's waterfront is currently offering increasing advantages for such a service. particularly in light of the many exciting and improvements san franciscans will see in the next few years. and given such things as our hosting of the 34th america's cup, the 150th anniversary of the founding of the port, the opening of the exploretorum next spring 2013, the
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completion of the wharf and completion of the james r. herman terminal. water taxis would logically have a role to play in this anticipated growth of san francisco's tourism and travel trade. three years ago the port commissioned a water taxi feasibility study. that study recommended that the port seek an operator that would 1, keep initial capital investment low, both on the part of the operator, as well as the port. and 2, develop a phased approach for starting the service that would eventually help the port to identify additional landings for future expansion and growth.
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two years ago, port staff entered into a landing rights agreement with the sole proprietor, who was unable to meet the minimum requirement of commencing a service in six months. in hindsight, the difficult economic times in 2009-2010, played a significant role in precluding that operator from succeeding. believing that circumstances have changed, in april, staff provided an informational presentation to the commission explaining the merits and launching a water taxi service along the city's shoreline and we informed the commission that it wished to issue a new question for qualifications, particularly in light of the increased anticipated increase in visitor demand. in light of the america's cup races and opening of the
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exploratorium and expanded port operations and control. including the added responsibilities for managing south beach harbor and pier 40. in july, port staff issued a request for qualifications and solicited over 600 identified parties and vessel operators throughout north america. and we received responses from nine very interested parties. in august, port staff organized a screening committee, composed of two members of port staff, one operations, one sales and marketing, as well as one manager from the san francisco municipal transportation agency, and a director of transportation policy from the office of mayor of the city and county of san francisco. this committee reviewed all
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submittals and held interviews and in line with the recommendation of 2009 feasibility study, the committee endorsed a small business that currently operates one vessel that meets the requirement of the rfq, which is less than 60' and no more than 49 passengers. and we endorsed an operator that can commence service by october. that operate is dave thomas, who is here today. and his company of san francisco water taxi. dave has been running successful excursions for the past 20 years. he runs with the emerald lady, shown here at pier 1 and 1/2.
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the emerald lady is 29' in let length and can carry up to 16 passengers. this year dave is on track to carry 25,000 passengers by year's end. as much an attract, as well as medium of transportation, san francisco water taxi can provide a refreshing alternative to congested roadways, and service transportation by offering a regularly-run route between port locations that will feature hop-on/hop-off style ticketing and can attract visitors from far away, as well as local residents from around the bay area. however, one and only one of the four candidates interviewed expressed a desire
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to run districtly an on-call, as-needed or on inducement taxi service that would incorporate points within port jurisdiction into runs that would begin or end with other locations around san francisco bay. that operator is captain taylor lewis, who is also here today. and his company is tideland marine group. one example of this type of service from south beach marina to city yachts. i understand that captain lewis is near finalizing a landing rights agreement with city yachts he could have in place to provide service in time for next month's america's cup races and events. tideland is currently operating one 12-passenger vessel out of
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sausalito, but captain thomas is a rated commercial vessel master. since the 2009 study did not focus on as-needed taxi service, the business represented by the tideland group seemed unique and yet not competing with the hop-on/hop-off style of operation. therefore, both have been presented with the business terms for this item and each of them have reviewed and discussed the provisions of the port's landing rights licenses in the standard form approved bit city attorney's office. and each operator is looking forward to commencing service in time for this year's fleet week. that is next month. today we are asking the port commission to hereby approve
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the landing rights license agreements with san francisco water taxi and tideland marine group on the terms and conditions described in the staff report, and we ask that you authorize the executive director or her designee to finalize negotiations and execute the landing rights agreements. if there are any questions, i will be happy to answer them to the best of my ability. and perhaps if you would like to hear from either or both of the captains, that would be appropriate, too. >> thank you, we do have public comment and i guess captain taylor lewis. >> motion to approve. >> second. >> okay. public comment? captain lewis, you are welcome to come up to the stand to make your public comment.
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>> good afternoon. my name is taylor lewis. i think i have had the pleasure of seeing you before during this whole process and we just wanted to thank the staff of the port and all the other members who contributed to the study. we really looking forward to virtually redefining how people move around the bay. i think we have a great alternative to keep people off the roads and show them a different area of this great place. so we just wanted to thank our great operators and really looking forward to spreading our operator knowledge to the san francisco waterfront domain and working in conjunction with another operator in the there maritime world, safety is first and we look forward to representing what san francisco is known for. thank you and we look forward to this opportunity. >> thank you, captain ray.
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>> good afternoon, commissioners. i would like to say thank you for the staff's diligence, due diligence and making sure that this happened in a timely manner. we're all up against the begin getting this ready for fleet week and america's cup and it was done right. i would like to also thank captain lewis who has sought out representation for his cruise. he has also agreed to an area standard p> thank you. questions from the commissioners? >> yes, can you briefly describe the selection process? how you get from nine to four to two and what criteria was
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based on? >> certainly, the nine, who had approached us with strong intentions were, for example, we had an operator from alaska. one from chicago. one the potomac river operator who runs water taxi service s around washington, d.c. and services the stadium for the nationals. however, the other five did not come forward with full, written proposals. so they weren't compliant with the basic requirements of rfq. that left us with four who were actually responsive and met all the timelines and filled all the criterion. it was weighted and based on
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financial stable, maritime safety experience record, asset ownership, and/or ability to finance and capitalize assets. particularly of the boats. again the class that we were talking about, which is less than 60' and 39 passengers or less. and then we just looked for some of the lesser weights went to things, like, their description of the kinds of service that they would be providing. and there were a couple others that unfortunately slip my mind. so these were all based on a weighted scale. each of the panelists, during the interview, only one person -- oh, each of the candidates were offered the exact same question, read in the exact
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same manner, but myself, who more or less conducted the oral interviews. and then based on their answers, each of the four panelists scored them individually. and then we just did simply the mathematical calculations and came out with the candidates that had the best score, the second-best score, the third best score and the fourth best score. >> thank you. >> okay. i had a question. i'm not sure, how many boats are in each fleet or is it one boat only? >> currently each operator has one boat. they each have designs to purchase another boat soon. but again, this is something that it's a big learning experience for everyone. we tried this again two years ago and it didn't quite work as we thought it would. so now we're asking the two operators
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to try these two unique and different services and then grow into them. >> because you said in the first instance, 25,000 people by the end of the year. so i'm trying to figure out how one single boat is going to? >> captain thomas, could you address that question, please? >> sir, could you speak -- sorry, the microphone records you for of the public. >> thank you. my name is dave thomas and i'm owner the san francisco water taxi, which i purchased about two years ago. it's been in operation over 20 years that and it was struggling when i bought it. i was able to turn it on around. we run just shy of 18,000 and looks like we'll run 20,000. we do it 16 passengers a boat load, 8 to 12 trips a day. that is how we do it. we have been averaging very well, in terms of our build-up.
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we'll go down a lot during the winter. that is why we're excited about this example, because we'll use the slow winter months as the boats sit idle. i would like to make a few comments at this time. or do you have everything that you need? >> why don't you make your comments? >> i would really like to thank you for this opportunity. the way i envisioned this, went back to baltimore where they have an inner harbor with pontoon boats, something that we could never put in our bay. but those little pontoon boats show up at water station stops every 15-15 and you pay $5-8 and you are able to get off at any location.
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they are food districts and entertainment districts and you can hop back on the little boats and it was so much fun, it work for me. when i went back six years later, it was still just as exciting. now that we're putting this in, i think we'll discover the reasons why we should have it and the reasons we didn't have it before and go through those painful moments. i think we're all going to learn together on this. we don't know what the successful formula is, but we have set up a company that is a profit-sharing company. everybody works for a commission, including myself and the boat. so everybody owns a piece of the action, which means during the slow winter months we're not going to tell you we can't make payroll that is why our captains and staff do very well.
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we think it's a three-year rout. i do have to thank -- there has been a lot of painful hand-holding behind-the-scenes here as we work out the details. i think the port staff has been very professional in trying to refine what is going to make this work. i am really hoping that we all realize we're really forging a new industry on the bay and we're doing it right now. if we had the answers, we would do it tomorrow. i think the people that eventually will replace us will look at what we have done and take the best and realize the mistakes that we made along the way. hopefully not too many, too soon. i thank you very much. >> okay.
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we'll consider that public comment. >> tidelands model has been developed over the course of the last six years by visiting every recreational and commercial port of call from alaska to maine. within that time i have worked hand in hand with port logistics and returned here about a year ago and sculpted the idea of a transportation system that is now represented in tide land. our vision is that we're building boats in maine, trying to find the right boat for this bay and why we feel this service hasn't succeeded in the bay so far is that existing water taxi companies bring their models to our bay, which has an established recreational and excursion fleet which has a crossover with their industry. small-passenger, our vessels, as the captain was explaining, this is a new market that requires some probing of where the demographic is.
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our first vessel holds 12. our next vessels will hold up to 28. our goal is to have three vessels working the waterfront by early next year and second one if not close to the end of this season. we have been very active in the north bay community at the arts festival and gathered a lot of great feedback and information from the local community and our goal is to utilize the existing infrastructure in the bay, which doesn't require anybody to develop anything. we have our own protocol to ensure safety. so our goal is to take no more up to 25-28 passengers on our fleet. we would rather keep vessel traffic minimal with that number. so our scalability is 1,3 and 5 and at the 5 -vessel, we feel that could run the hemisphere and routes, which is also cross-bay traffic. we feel with the america's cup
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coming up there will be small-boat traffic from the fleet. as you know our bay can't really facilitiat a lot of traffic that comes here. the general anchorage in this bay, in richardson bay, they like to socialize in san francisco and they will have small-boat traffic. our shipping lanes for commercial traffic run east-west and we don't want to have a headline that says, "small boat foreign operator hit by a tanker," so we're going to facilitate a 24-hour launch service to the new guests to the city, which we're just looking to spread money in places that should get it. so like i said, our model is one vessel. and then three by early next year and based on the response from the community at-large, we would then move ahead in our
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relationship with the discovery museum, with kind of a platform for dynamic waterfront interaction. >> thank you. well, i think we are all very excited about the concept of water taxis and i think that we have both seen the long-term use and vision of it across for tourists and other reasons. but i think we're also looking in the short run of trying to relieve some of the congestion that we see from some of the major events youth. coming up. i don't know how much is going to help with fleet week, because it sounds like we're starting off and we have to learn how to walk before we run. commissioner brandon and i were in newport and their water taxis were used very effectively to alleviate the congest for the world series america's cup there. what they did, which was maybe the waters and all the issues that were just raised in terms of number of crafts and everything, but they sort of commandeered any
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boat available and made them into a water taxi for that particular weekend. every five minutes you could get on a boat and go to where america's cup was, because it was a centralized event. i'm not sure we'll see that kind of effort, but having experienced all the parking issues myself and not being able to get to the america's cup during the world series while it was here. so if i could have gotten onto a water taxi, that would have been a much better solution. so we support the idea. the other part of is and i'm sure we have to figure out within the port and i notice that you have the san francisco marina and other places beyonds port property, how do we go to other parts managed by other landing stops, managed by other agencies, not ourselvess? because that has to be part of the long-term plan, to figure out how we do that because it
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will make it probably more economic for operators to go to places that are beyond port property. >> i think it's a good idea. it's almost like a pilot program just starting out. i understand in the '90s at one point they might have had a water taxi service. i'm not sure, here in san francisco. i know seattle has one and other places have water taxi service. i agree with commissioner woo ho that we start out and give it this opportunity and i think it has an opportunity to create more opportunities where more people will take advantage of it. unlike here, if i wanted to go to the america's cup, i would take a water taxi and do whatever i had to do. so i'm going to vote to support this. >>

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